Advertisement
SKIP ADVERTISEMENT
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
A strong dollar helped drive an uptick in U.S. imports last year, while export growth remained modest.
By Ana Swanson
Ana Swanson covers international trade and is based in Washington.
Feb. 5, 2025
The U.S. trade deficit in goods hit a record $1.2 trillion last year, as American consumers snapped up imported products and a strong U.S. dollar weighed on export growth.
Data released Wednesday morning by the Commerce Department showed that U.S. imports of goods and services grew 6.6 percent to a record $4.1 trillion, as Americans bought large amounts of auto parts, weight-loss drugs, computers and food from other countries.
U.S. exports of goods and services to the world also hit a record, reaching $3.2 trillion in 2024.
That was driven by record sales of U.S. services, like business and financial advising, as well as foreign spending on travel in the United States. But exports of goods taken on their own grew more sluggishly, as a strong U.S. dollar made it more expensive for other countries to buy American products, and the United States sold fewer cars, car parts and industrial supplies, like raw materials and machinery, to the world.
Competition from automakers in China and strikes in the U.S. auto industry weighed on exports of vehicles, parts and engines, which fell $10.8 billion compared with the year before.
Mark Zandi, the chief economist at Moody’s Analytics, said Chinese electric vehicle sales had taken off in 2024, in China and elsewhere, and were siphoning market share from other producers. Companies like General Motors have been under pressure in China, where more than four-fifths of the electric and plug-in hybrid cars sold are now Chinese brands.
“The Chinese auto industry has really come on and is very competitive in the E.V. space,” Mr. Zandi said. “And that’s a real problem for U.S. manufacturers that are producing and exporting to the rest of the world.”
Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
Already a subscriber? Log in.
Want all of The Times? Subscribe.
Advertisement
SKIP ADVERTISEMENT
